Trade Responsibilities in the Executive Branch Marideth J. Sandler Sandler Trade LLC

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POTUS NSC USTR TPRG/TPSC ACTPN APAC/ITAC LAC IPR FTA TIFA BIT GSP AGOA CBI Special 301 PWL WL FRN DOC BIS IA ITA MAC AD/CVD NEI FTZ USDA DOL DOS Treas USITC HTSUS 3

4 Executive Office of the President: NSC, USTR, OMB, NEC, etc. Executive Branch

U.S. Constitution assigned authority over foreign trade to Congress; President (POTUS) got negotiation authority. Congress then delegated to POTUS authority to negotiate agreements to reduce tariffs within pre-approved levels. President delegated to the Office of the U.S. Trade Representative (USTR) development and coordination of U.S. international trade, commodity, and direct investment policies; and overseeing negotiations with other countries. U.S. Trade Representative (Kirk) leads USTR. The USTR is an Ambassador and Cabinet member who serves as President’s principal trade advisor, negotiator, and spokesperson. National Security Council (NSC) helps POTUS oversee trade. USTR is in the Executive Office of the President. Through an interagency structure (TPRG & TPSC), USTR coordinates trade policy, resolves disagreements, and frames issues for presidential decision. 5

Free Trade Agreements (FTAs): w/ 17 countries Trade and Investment Framework Agreements (TIFAs): 45 TIFAs Generalized System of Preferences (GSP), African Growth & Opportunity Act (AGOA), Caribbean Basin Initiative (CBI), Andean Trade Promotion Act (ATPA) Special 301 (Intellectual Property Rights (IPR) Review): Notorious Markets (>30), Priority Watch List (PWL): 12 countries, Watch List (WL): 29 countries. Bilateral Investment Treaties (BIT): with 40 countries Consultation with 28 appointed industry and special interest advisory groups: ACTPN, APAC, ITACs, LAC Issues Federal Register Notices (FRNs) 6

Mission: make U.S. businesses more innovative at home and more competitive abroad Comprised of 12 different agencies (weather, patents, exports, fish management, textiles) Key trade agencies: – Bureau of Industry and Security (BIS) – International Trade Administration (ITA) – Patent & Trademark Office (PTO) – U.S. Census Bureau (Census) 7

Advance U.S. national security, foreign policy, and economic objectives by ensuring an effective export control and treaty compliance system and promoting continued U.S. strategic technology leadership, including to: Regulate dual-use commodities, software, and technology through export control license requirements, policy, and processing Implement anti-boycott provisions 8

Manufacturing and Services – U.S. industry competitiveness – Global market access (trade policy & negotiation) – Expand exports (National Export Initiative (NEI)) – Advisory committee system (ITACs) Market Access and Compliance (MAC) – IPR, quotas, standards, customs, trade agreements – Trade Compliance Ctr; Africa/Mid East/S. Asia offices – Rule of law in business program (Good Governance) Import Administration (IA) – Enforce trade laws & agreements (textiles & apparel, AD, CVD, steel import monitoring, FTZs) 9

Department of State (DOS) Department of Agriculture (USDA) Department of Treasury (Treas) Department of Labor (DOL) Ex-Officio: U.S. International Trade Commission (USITC or ITC): an independent agency – Administers U.S. trade laws within its mandate – Provides U.S. export and import data/Maintain Harmonized U.S. Tariff Code (HTSUS) – Does independent trade studies pertinent to FTAs, regulatory decisions, tariffs, U.S. competitiveness 10

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Usually a country requests an FTA; can be an industry or ITAC, too Interagency consensus (impacts of a comprehensive FTA, etc.) President informs Congress of intent to negotiate, followed by a waiting period (per TPA) During waiting period: USITC report; Hill & advisory committee consultations; public comments Administration prepares and internally approves proposed text; shares with Congress & advisory committees Once FTA negotiations concluded: announcement, legal scrub, signing Getting the FTAs through Congress: “little to do with agreement substance and everything to do with U.S. politics” During course of FTA negotiation and especially after signing, Embassy and private sector associations lobby extensively on Hill 12

“While delegating some authority, Congress in no way surrendered its trade authority.” Ask questions – you’ll find out more than just the answer you are seeking. Meet your deadlines. Keep current: e-newsletters (agencies and companies), Facebook and twitter. Know which agency really is in charge of a responsibility (despite what others may say). What you see is not always what it is, so…. Keep asking questions and solicit opinions. 13

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